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margnal costng

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › margnal costng

  • This topic has 4 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • October 17, 2014 at 12:28 pm #204713
    esti20
    Member
    • Topics: 12
    • Replies: 7
    • ☆

    john moffatplease help me out wd dis question?

    Q. 25000 units of a product were manufctured of a single prodct during which 28000 were sold. unit cost of a prodct were
    dirct costs $ 16.2
    fixed prodction overhead $7.6
    fixed non prodcton ovr head $2.9

    what is the dfrnce btw the absorptioon costng profit n margnl costng profit?

    October 17, 2014 at 12:37 pm #204714
    esti20
    Member
    • Topics: 12
    • Replies: 7
    • ☆

    is the answer 22800?

    October 17, 2014 at 5:23 pm #204752
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    That is correct 🙂

    The inventories will change by 3,000 units.
    The (production) fixed overheads are $7.60 per unit.

    So the difference in the profits is 3,000 x $7.60.

    October 18, 2014 at 9:13 am #204795
    esti20
    Member
    • Topics: 12
    • Replies: 7
    • ☆

    thaanxz alot sir 🙂

    October 18, 2014 at 9:37 am #204807
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    You are welcome 🙂

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